Ahead of tonight’s European Central Bank (ECB) meeting, markets expect central banks to continue to maintain stimulus measures in their monetary policy setting.
The ECB is seen as in no hurry to change its stance on current monetary policy, especially after President Christine Lagarde made a dovish statement following the Eurogroup meeting earlier this month.
Lagarde previously dismissed some speculation hovering in the market that there would be major changes in current policy setting during the June policy meeting.
Investors believe that talks of tapering in its pandemic emergency bond purchases as the economic outlook remains uncertain.
Basically, the outlook for the European Zone economy is brighter, supported by encouraging data readings over the past few months.
However, there were also concerns over the recent disappointing data readings, where factory orders and industrial production in April recorded declines following weak retail sales.
Subsequently, the ECB may choose to avoid discussion on the issue until economic data exhibits growth that is in line with expectations.
During the European session, the euro traded steady around 1.21600 against the US dollar.
